Buddy's Bakery makes bread, muffins, and croissants
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Buddy's Bakery makes bread, muffins, and croissants

Buddy's Bakery makes bread, muffins, and croissants. The products have the following unit product costs and additional data:


The mixing machines are the constraint of the bakery. The amounts of mixing minutes available per month given the current equipment is provided below. Direct labor is a variable cost of the bakery.

Total monthly mixing minutes available                 6,950

What is the total mixing minutes needed to meet the customer demands?

Given the constraint, which product should the bakery make first?

How many units of bread should the bakery make?

How many units of muffins should the bakery make?

How many units of croissants should the bakery make?

If the bakery could rent additional mixing time, how much should they be willing to pay per minute (round answer to 2 decimal points, ex. 3.33)

Hint
Accounts & Finance"The demand rate is defined as the number of units, worth of an item requested by a customer in a unit time period. It's a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise. There is an inverse relationship between the supply and prices of goods and services when demand is unchang...
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